Analyst Views Apology as Strategic Move Ahead of Robotaxi Launch
Wedbush analyst Dan Ives stated in a report on Wednesday that Elon Musk’s recent apology to President Donald Trump could reopen the path for their alliance, describing it as “a smart move ahead of the Robotaxi unveiling.”
Musk posted on X: “I regret some of the posts I made last week about President Trump. They were too extreme.”
The Wedbush analyst characterized this as a “significant step” toward mending their relationship. Ives emphasized the critical nature of the apology because “Musk needs Trump, and Trump needs Musk.”
Investor Concerns Over Strained Relationship
The firm noted that “the falling-out between former allies has become a concern for Tesla’s (NASDAQ: TSLA) stock price,” as investors worry that “a vengeful Trump could make the autonomous driving future centered on Tesla more difficult.”
While not expecting a return to their “close relationship days at Mar-a-Lago,” Wedbush anticipates a gradual reconciliation. Trump requires Musk’s connection to the Republican Party, while Musk needs Trump for various reasons, including securing “federal regulatory approval for autonomous driving.”
Timing Coincides with Major Tesla Announcement
The reconciliation timing is notable as Tesla prepares to launch its highly anticipated Robotaxi in Austin on June 22.
Wedbush considers this “a major initiative for Musk and Tesla” and believes “the feud with Trump will not hinder this plan.”
AI Revolution Positions Tesla for Long-Term Growth
According to Ives, the core focus for investors is “the AI revolution now arriving at Tesla,” which will position the company alongside Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) as “one of the best pure AI investment plays for the next decade.”
Wedbush estimates that “AI and autonomous driving opportunities alone represent at least $1 trillion in value for Tesla,” fully expecting “these critical initiatives to gain rapid advancement under a Trump administration.”
The firm believes “Tesla could reach a 2trillionvaluationbylate2026″inabullcasescenario,as”thecompany′sjourneytowarda2 trillion valuation has already begun.”
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